Office pods and depreciation in New Zealand
A pod bought for your business is depreciable property, so its cost is written off against taxable income over the asset's life. That matters more than it used to, because depreciation on commercial buildings was set to zero from the 2024 to 2025 income year while moveable assets kept theirs. Here is how the difference works, with a worked example. It is general information rather than tax advice, so confirm your own position with your accountant.
The rule that changed
From the 2024 to 2025 income year, the depreciation rate on commercial and industrial buildings is zero. Money that goes into the building itself no longer produces a depreciation deduction. Commercial fit-out and moveable assets were not caught by that change and continue to depreciate in the normal way.
That is a real consideration when you are weighing a built meeting room against a pod. Part of the cost of building a room goes into the structure, and that part now sits in the zero-rated category. A FocusPod is not part of the building at all.
Why a pod is depreciable property
A FocusPod sits on the floor. It is not fixed to the building fabric, it needs no consent, it runs from a standard socket, and it is designed to be taken apart and moved when you relocate. It is carried as a fixed asset of the business and depreciated over its estimated useful life at the rate Inland Revenue sets for office furniture and fittings, using either the diminishing value or straight line method.
A pod costs well above the low-value asset threshold, so it is capitalised and depreciated rather than deducted outright in the year of purchase. Your accountant sets the rate and method that apply to your asset register.
A worked example
Take a FocusPod Meet, our four-person meeting pod, with installation. The pod is NZ$23,995 and installation is NZ$2,495, so the capitalised cost is NZ$26,490 excluding GST.
| Line | Amount |
|---|---|
| Capitalised cost, deducted through depreciation | NZ$26,490 |
| Income tax relief across the asset's life | about NZ$7,417 |
| Effective cost of the pod | about NZ$19,072 |
The relief is spread across the years in which depreciation is claimed rather than taken in one year, so the annual amount depends on the Inland Revenue rate and the method your accountant applies. GST is dealt with separately and is normally claimable by a registered business on a purchase for business use.
Six models, one configurator
Every FocusPod has a glass front and rear, built-in wheels and adjustable levelling feet.
FocusPod Solo
NZ$9,695 · Configure this model ↗
FocusPod Solo Plus
NZ$15,995 · Configure this model ↗
FocusPod Duo
NZ$17,995 · Configure this model ↗
FocusPod Team
NZ$22,495 · Configure this model ↗
FocusPod Meet
NZ$23,995 · Configure this model ↗
FocusPod Max
NZ$30,495 · Configure this model ↗
Three things to get right
Available for use, not ordered. Depreciation runs from when the asset is available for use in the business, and the first year is apportioned. A pod installed in the last month of your income year attracts roughly a month's worth, not a year's.
Keep it off the fit-out invoice. If a pod is bought inside a wider fit-out contract, have it listed separately so it is clearly a moveable asset. Our quotations list the pod, delivery and installation as separate lines for exactly this reason.
Record it as its own asset. Hold the approved specification, the invoice and the delivery record with your fixed asset register. If the pod later moves to another building, that paperwork shows it is the same asset.
Common questions
Can I deduct an office pod in the first year?
Not outright. A pod costs well above the low-value asset threshold, so it is capitalised and depreciated over its estimated useful life rather than expensed in the year of purchase. Your accountant confirms the rate and method.
Does the commercial building depreciation change affect a pod?
No. The zero rate applies to commercial and industrial buildings. A FocusPod is not part of the building, so it continues to depreciate in the normal way. That is part of why the comparison with building a room has shifted.
Does installation form part of the cost?
Costs of bringing an asset into use are generally capitalised with it, which is one reason our quotations list delivery and installation separately rather than burying them. Confirm the treatment with your accountant.
Can we claim the GST?
A GST-registered business buying a pod for business use would normally claim the input tax in the usual way. Your quotation sets out the GST separately so the treatment is clear.
What about several pods across sites?
Each pod is listed separately on the quotation, which keeps the fixed asset register and the depreciation straightforward even where pods sit in different buildings or islands.
Ask us for it itemised
Build the configuration you want, then ask for the quotation set out the way your accountant prefers: pod, delivery and installation as separate lines, with GST shown separately.
This page is general information for New Zealand businesses and is not tax, accounting or financial advice. Rates, thresholds and depreciation rules change. Confirm the current position with your accountant or tax adviser before relying on any figure here.